Reach Resources (ASX:RR1) has acquired three prospecting licences — P59/2210, P59/2408 and P59/2411 — at its Murchison South Gold Project near Payne's Find, Western Australia, with the tenements directly adjoining the company's Pansy Pit mining lease M59/786 and lying immediately south-west of the Shamrock deposit.

Key Points

  • Prospecting licences P59/2210, P59/2408 and P59/2411 acquired, directly adjoining the Pansy and Shamrock deposits along the Primrose Shear corridor
  • P59/2210 acquired from Shane John Calegari for $25,000 cash and 2,509,008 fully paid ordinary Reach shares
  • P59/2408 and P59/2411 acquired from Murchison Earthmoving & Rehabilitation Pty Ltd for $20,000 cash and 1,427,612 fully paid ordinary Reach shares
  • Consideration shares to be issued under the company's existing placement capacity pursuant to ASX Listing Rule 7.1; cash consideration funded from existing cash reserves
  • The Pansy Pit hosts an Inferred Mineral Resource Estimate of 72kt at 2.5g/t Au for 5,800 ounces

Acquisition Terms and Vendor Details

Licence P59/2210 was acquired from Shane John Calegari for $25,000 cash and 2,509,008 fully paid ordinary Reach shares. Licences P59/2408 and P59/2411 were acquired from Murchison Earthmoving & Rehabilitation Pty Ltd for $20,000 cash and 1,427,612 fully paid ordinary Reach shares. The filing states that neither vendor is a related party of the company. Consideration shares are to be issued under the company's existing placement capacity pursuant to ASX Listing Rule 7.1, and cash consideration will be funded from existing cash reserves. Completion of each acquisition will occur following delivery of required transfer documentation and payment and issue of applicable consideration.

Strategic Rationale for Pansy Pit Expansion Corridor

The Pansy Pit, which hosts an Inferred Mineral Resource Estimate of 72kt at 2.5g/t Au for 5,800 ounces and sits on the Primrose Shear between the Jacamar and Shamrock deposits, is currently constrained by the alignment of the Maranalgo Road, which passes immediately adjacent to the existing pit. Acquisition of the tenements secures ground immediately to the south and west of the Pansy Pit, providing a corridor to potentially realign the Maranalgo Road. The filing notes that any realignment will be subject to consultation with and approval from the Shire of Yalgoo and any other relevant authorities. The company stated it has not made a decision to expand the Pansy Pit, and no mine design, production target or economic assessment has been completed.

Geological Setting and Planned First-Pass Exploration

Geophysical imagery shows a distinct magnetic low in the west of P59/2408 and the south of P59/2210, interpreted to reflect a felsic intrusion bounded by a greenstone contact and associated faulting. Geological mapping records quartz veins within the tenements, which the filing identifies as a priority for follow-up investigation given that quartz veining hosts gold mineralisation at the nearby Blue Heaven deposit. The company disclosed it intends to undertake first-pass exploration over the tenements, including detailed mapping and rock chip sampling of the quartz veins and the interpreted contact zone, to define targets for future drill testing. The filing states there has been insufficient exploration to determine whether gold mineralisation is present.